The U.S. Congress is poised to pass a new bill imposing restrictions on Chinese biotechnology and technological investments. With bipartisan support, the bill will prevent certain Chinese biotech companies from receiving contracts funded by the U.S. government and authorize the government to block U.S. investments in Chinese artificial intelligence (AI) and advanced computing fields.
These bills include the “Biosecure Act” targeting Chinese biotechnology and the “Fight China Act” aimed at curbing U.S. investments in Chinese military technology. Both have been included in the latest draft of the National Defense Authorization Act (NDAA), which has garnered bipartisan support in both houses of Congress.
The bill removed a provision strongly opposed by the U.S. chip company Nvidia, which required U.S. chip companies to prioritize meeting the needs of American customers before selling AI chips to China.
According to the process, the bill must first pass through the House of Representatives and the Senate before being submitted to the President for signature. For decades, Congress has passed the annual NDAA, considered a highly likely legislation to be approved.
The “Biosecure Act” had previously gone through the legislative process in the previous Congress but was stalled due to some lawmakers objecting to the bill singling out certain companies, some of which have factories in the U.S. and contracts with U.S. laboratories.
The new version of the “Biosecure Act” mandates the Office of Management and Budget (OMB) to develop a list of biotech companies that will be prohibited from receiving federal contracts, funding, or loans within a year, while also providing companies with the opportunity to appeal.
Companies listed on the Department of Defense’s “Chinese Military Companies” list, including BGI Genomics Co. and its affiliate MGI Tech Co., will also be subject to the ban.
Bloomberg reported in November that the Department of Defense has recommended adding another Chinese biotech company, WuXi AppTec Co., to the list. The Department of Defense list may expand to include other companies periodically.
The three Chinese biotech companies listed by the Department of Defense deny being affiliated with the Chinese military.
However, U.S. lawmakers caution that Beijing aims to dominate the biotech sector, which could potentially be exploited for the development of advanced weaponry.
Additionally, the “Fight China Act” authorizes the Secretary of the Treasury to prohibit or require U.S. companies to report investments in sensitive technological areas in China, including AI, semiconductors, quantum computing, and hypersonic technology, which lawmakers believe have military applications.
The bill also includes provisions to strengthen the review of foreign land acquisitions near U.S. military bases, as lawmakers express concerns over Chinese companies purchasing land in sensitive areas.